Warning For Bali Business & PT Company Registration,VITAL INFORMATION

We continue to see foreign investors in Bali business and persons doing business in Indonesia suffer major losses and
serious Bali legal problems because of illegal Bali business operations due to misunderstanding or incorrect information
during the formation of their Bali companies. Out of a deep concern for these persons and a genuine concern for both
the image of Bali Indonesia and the long-term interest of Bali and the Balinese people we have produced a Bali business
and Bali law guild that we truly hope may protect people from such losses and in turn better serve Bali and it’s people.

Due to the very complicated nature of Bali business law and the forming of a legal Bali company for doing business in
Indonesia it is vital to employ the services of a creditable Bali legal service provider to produce a secure Bali company.
To achieve total investment security the completed Bali company formation must fully be under the sole control of the
client or investor. The reliable Bali legal service provider should also obtain all the necessary local government licenses
needed to conduct a legal Bali business, fully included in a Bali company formation service offered to foreign investors.

Due to the great complexity of the procedures and formalities that must be correctly completed to obtain an approved
company license in Indonesia and the complex registering with local government offices for both a local Bali company
(PT) or a foreign company (PMA - Foreign Direct Bali Investment Company). It is vital that foreign investors seeking
to establish legal Bali Indonesia companies for doing business in Indonesia only employs the services of a licensed and
experienced Bali legal service provider to effect the formation of their secure Bali business company, because of these
very complex procedures and protocols involved in the effecting of legal Bali Indonesia company formations that fully
comply with all the complex Bali business laws for Bali business operation and Bali investments from foreign nationals.

Many government authorizations and approval documents must be awarded and obtained in order to finally be granted
the approved and completed Bali legal company, allowing legal Bali business operations. The local government officials
(village chief or Kepala kampung) of your business address (government recorded address) must approve applications
to operate a business at that address. Then the district heads of the same locations must also approve the Bali business
proposal before being able progress to local and lower government offices to obtain more business rights and approval.

We then work our way through the appropriate Denpasar government offices obtaining the business approval and Bali
licenses that make up the final Bali company registration, including the approved buildings offices, Bali taxation offices
and some other necessary local government offices. Once the new Bali company registration has been fully completed
in Bali, documents must be sent to Jakarta for further approvals and registrations allowing us to receive more business
authorization documents including the department of the ministry of justice. At the end of this complicated process the
approval and registered Bali company license complete with the Bali company SIUP number will be issued and granted.

There are indeed a many number of persons or agents (most unregistered and not legal) offering to obtain immigration
Indonesia Bali visas, Bali company formations and other Bali legal services. The tricks being used to abuse their clients
trust is at an all-time high. The complexities of Bali business law and other formalities here make it very easy for such
agents to operate. Be sure you know what you are getting and how much (totals) you will be paying for their services.

To reduce the high risk of complications, misunderstandings and disappointment we strongly recommend that foreign
investors only employ the services of an approved Bali legal service provider, for the formation of Bali legal companies
for doing business in Indonesia and approved and registered immigration Indonesia agent (please contact us if you are
unsure how you can confirm the same). If dealing with unapproved agents that have no company licenses it would be
very hard if not imposable to have your funds returned should any service agreement or contract not fully be honored.
We strongly recommend that you ask for client references for Bali companies they have already successfully formed.

TIPS FOR FORMING A BALI COMPANY FOR DOING BUSINESS IN INDONESIA

Get a Contract! - Have a detailed legal contract drawn that clearly defines the service agreement. This should include
details of the Bali legal service/s being provided and list any tangible items that are also to be provided. A wise move is
to have the contract detail the total service fees that are payable for the itemized legal service. Failure to record service
charges and details of the Bali legal service/s or items to be provided could result in unexpected charges at a later date.

If you have a contract drawn that reflects any verbal agreements made you stand a much better chance of having the
services delivered. More-over if for whatever reasons the service/s (company formation) cannot be fully completed or
either party violate terms of the contract the interests of both parties will be better served should arbitration be needed.

Size of Company! - Indonesian companies are specifically classed as small, medium or large companies. The smaller
class of Bali company is easier to produce and requires a lower investment and deposit of funds into the Bali company
bank accounts during the creation and formation of the Bali company. However, small Bali companies cannot sponsor
or provide visa for working in Bali. It is therefore important to remember that the small-class of local company cannot
support or sponsor any foreign workers or investor in Bali to be legally working in Bali or doing business in Indonesia.

Small company formations are also limited as to what operations they can legally perform. It is therefore vital that you
are clear as to the type of Bali business activities you are intending to perform and that the completed company license
can support the same. Failure to accomplish this could later result in the company trading or operating outside of what
the Bali company is permitted to do and will result in all manner of Bali legal problems due to illegal business operation.

Larger Bali company formations are much less restricted and can accommodate foreign workers or foreign investors,
however must also have important categories contained within their permitted company trading operations. The same
approved authorizations must meet the specifics of the Bali business operations, for example import/export or tourism.

Company Registration in Bali Indonesia – All Bali Indonesia companies must also be registered in Jakarta, however
a Bali based legal trading company must also complete a further registration processes in Bali, failure to complete these
processes and obtain these extra Bali local licenses means that the company cannot legally trade or operate within Bali.